Mortgage Advice. First Time Buyer

Steameh

Afternoon all,

I'm looking to step into the big world of having a mortgage

My current situation is as follows.

£21,000 PA
£0 Debt
Living with parents
£4500 savings

Is it even remotely possibly that I'd be accepted for a 95% mortgage on the above? The house I have seen is £79,995.

I have a pretty good credit rating as I've been in debt previously and always over paid and on time.

I've had a chat with a mortgage place and they said they'd lend me £78,000 but obviously I'd need to put in an application for it to be fully approved.

ACG

There are a couple of 95% mortgages available.
Is it a new build?

If so i think you might be best going with the builders mortgage advisor if they have an agreement in principle?

Steameh

It's not a new build no. I've gone through The Nottingham building society who are offering 95% mortgages and they've said they can lend me the £78,000 providing all the checks are ok.

ACG

Presumably as your living at home then you probably havnt had too many bills iin your name which you may have forgotten about - so chances of missed/late payments are probably quite slim?

The only thing that might go against you is the lack of credit potentially. but the only way to know for sure is if you put an application in.

Steameh

I'm extremely organised when it comes to my finances. I have a seperate bank account which all my direct debits come out of. As soon as I'm paid I transfer the required amount over and it's done, the same would apply for the mortgage and house hold bills.

I've had my fair share of debt in the past and always over paid and on time so plenty of evidence.

If they don't offer the required amount of credit I'm saving £700 a month anyway so will just have to keep saving until it's possible.

ACG

Personally i would just go for it.
If they want a bigger deposit then 10 months down the line you wouldnt be far off a 15% deposit anyway.

The_J

Nottingham are fairly strict lender on credit score so you seem fine, as ACR says go for it. Don't forget to thank him!

Steameh

Cheers for replies guys! I'll start enquiring properly.

Wish me luck!

JimmyTheWig

Only thing I'd say is watch out for solicitors fees, etc.
It will cost a fair bit to move. If this is coming out of your savings then you'll have less than the 5% deposit you need.

But if what you've put down is your position now then by the time you move if you're saving £700 a month you should be fine.


Only thing to question is your past debts. You've said you've been in debt before. Was all of that agreed debt or did you go over your limits / miss payments, etc?

Steameh

I have 4 missed payments on my history. 2 from 2008 and 2 from 2006. My debt runs right up to a few months back and everything since then has been on time.

JimmyTheWig

Hmmm, not too bad I guess.
Did you tell them about these missed payments when you spoke to them?